The London Stock Exchange has opened up its datacenter to firms wishing to physically place their servers next to the TradElect execution engine Infolect the Exchange's information systems. The aim is to eliminate latency and speed trading. For member firms connected to the London Stock Exchange via 100 megabit lines, the Exchange Hosting service could reduce roundtrip trade execution and market data transmission times by another one and a half milliseconds. Further performance benefits are possible for clients using lower bandwidth connections or who are located outside central London. An initial release of cabinets this month will be followed in February next year according to demand. David Lester, Chief Information Officer at the London Stock Exchange, said: "The service will allow customers to host their algorithmic engines next to our core TradElect execution engine and aid further liquidity generation and market efficiency. This underlines our commitment to reducing latency at each stage of the trading cycle and facilitating the structural shifts in trading patterns that are driving growth on our markets. Current capacity on TradElect will initially double to 10,000 continuous messages per second. In October, it will double again to around 20,000 continuous messages a second and end-to-end execution latency on TradElect will be reduced by 50 per cent from six milliseconds to three milliseconds.